About this Show

Public Affairs

News News/Business. (2013) George Osborne, British Chancellor of the Exchequer, outlines the proposed budget to members of the House of Commons. New.

NETWORK

DURATION
01:15:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel 17 (141 MHz)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Britain 19, Us 8, U.s. 5, Europe 3, Cyprus 2, Imf 2, Carney 2, George Osborne 2, London 2, Germany 2, England 2, Uk 2, India 2, Afghanistan 2, Nato 1, Robert Mcdowell 1, Lance Corporal James Ashworth 1, Toothose 1, Daniel 1, Osborne 1,
Borrow a DVD
of this show
  CSPAN    Public Affairs    News  News/Business.  (2013) George Osborne, British  
   Chancellor of the Exchequer, outlines the proposed budget to...  

    March 25, 2013
    12:35 - 1:50am EDT  

12:35am
at the commission? >> we do not have staggered terms. gone by six years have very quickly. we shall see. i get asked this question every couple years. you have been there almost seven years, you get asked. we are thinking about it, but we shall see. >> taking about what? >> what to do next. what comes after the commission. as a limited government person i do not think we should stay in positions forever, but at the wee time i love my job and have a lot important work to do. >> this past week, commissioner robert mcdowell and chairman julius czajkowski announced their resignations from the fcc. hear more on monday night from "the communicators," at 8:00 eastern on c-span 2.
12:36am
>> wednesday, british chancellor torch osborne unveiled the government's proposed tax and spending plans to members of the british house of commons. he told members 600,000 more jobs will be added this year according to forecasters. corporation tax will be cut to 20%, the lowest tax rate than any other economy in the world. in his one-hour speech, chancellor osborne announced measures aimed at assisting small business owners, first- time homebuyers, and british veterans. this is about an hour and 15 minutes. mr. deputy speaker, this is a budget for people who aspire to work hard and get on. it's a budget for people who realise there are no easy answers to problems built up over many years. just the painstaking work of putting right what went so badly wrong. and together with the british people we are, slowly but surely, fixing our country's
12:37am
economic problems. we've now cut the deficit not by a quarter, but by a third. we've helped business create not a million new jobs, but one and a quarter million new jobs. we've kept interest rates at record lows. but mr. deputy speaker, despite the progress we've made, there's much more to do. today, i'm going to level with people about the difficult economic circumstances we still face and the hard decisions required to deal with them. it is taking longer than anyone hoped, but we must hold to the right track. and by setting free the aspirations of the nation, we will get there. our economic plan combines monetary activism with fiscal responsibility and supply side
12:38am
reform. and today we go further on all three components of that plan: monetary, fiscal, and supply side reform. but we also understand something else more fundamental. our nation is in a global race competing alongside new centres of enterprise around the world for investment and jobs that can move anywhere. building a modern reformed state to drivefford. businesses overseas with taxes getting more and more uncompetitive. .o let schools fail pick up welfare system the human casualties and assume a uncontrolled banking boom would pick up the bill. , wein in the global race
12:39am
are doing the exact opposite. building a modern reformed state that we can afford. bringing businesses to our shores with competitive taxes. fixing the banks. improving our schools, our skills, our infrastructure -- >> obviously the country is waiting to hear the chancellor. i am sure most of the people in this chamber also want to hear the chancellor. lees, let's hear the chancellor, george osborne. >> for years, mr. deputy speaker, people have felt that the whole system was tilted against those who did the right thing, who worked, who saved, who aspired. these are the very people we must support of britain is to have a prosperous future. this is a budget for those who aspire to own their own home, who aspire to get their first job or start their own business , a budget for those who want to
12:40am
save for their retirement and provide for their children. it is a budget for our aspiration nation. mr. deputy speaker, the forecast from the independent office for budget responsibility today reminds us of the economic challenge at home and abroad. but it also reminds us -- >> order. order. the shadow chancellor may not have been the chancellor, but he should have the courtesy and know better. it is not in your position. let's not have this become a circus. george osborne. the ob are has revised down
12:41am
again its forecast for a global economic growth and sharply revised down its forecast for world trade. growth in the u.s. and japan was flat in the last quarter, well the eurozone shrank by 0.6%, the largest fall since the height of the financial crisis. the problems in cyprus this week are further evidence that the crisis is not over and the situation remains very worrying. i can confirm that the people sent to cyprus to serve our country, in our military or government, will be protected in full from any tax on their deposits. has sharply- obr revised down their future growth forecast for the eurozone, and expect it will main in recession throughout this year. in their words, the underlying situation in the eurozone remains very fragile. i will be straight with the country -- another bout of economic storms in the eurozone would hit britain's economic fortunes hard.
12:42am
40% of all we export we export to the eurozone. there is a huge effort across this government to grow britain's trade with the fast- growing parts of the world. exports to brazil, india, and china are up almost two thirds. uk firms now export more goods to non-eu countries than to eu countries, the first time this has happened in over two decades. but we're still very exposed exposed to what happens on the continent. , domestict year demand was actually stronger than forecast, but it was the weakness of net trade that helped account for much of the weakness in gdp. clear, themakes unexpectedly poor performance of exports is more than sufficient and its own to explain the shortfall. gdp last year turned out to be a little higher than the forecast in december, but this year their output forecast is reduced to 0.6% growth.
12:43am
despite the recession in the eurozone, the central forecast today is we avoid a second quarter of negative growth here in the uk. while less than we would like, our growth this year and next year as forecast by the imf is higher than france and germany. it is a reminder that all western nations live and very challenging economic times. they expect the recovery to pick up to 1.8% in 2014, 2 .3% 2.7% in 2016, and 2.8% in 2017. crucially, jobs are being created. indeed, in the words of the obr, the picture unemployment continues to surprise on the upside in this forecast. we deputy speaker, when started the unavoidable task of reducing the size of the public- sector workforce, some in the house expressed doubts that the private sector would be able to make up the difference. i am glad to report to the
12:44am
house that their lack of confidence in british businesses has been misplaced. the energybute to and enterprise of the british companies that for every one job lost in the public sector in the last year, six jobs have been created in the private sector. the employment rate has been growing faster than in the u.s. and three times as fast as in germany. and so despite the weaker gdp, at this budget theobr has revised further its forecast for employment. compared to this time last year, they now expect 600,000 more jobs in 2013 and 60,000 fewer people claiming unemployment benefit. we have seen more people in work than ever before, including a record number of women. a quarter of a million fewer were close out -- households than two years ago. the unemployment rate is lower
12:45am
than when we came to office. mr. deputy speaker, the deficit continues to come down. we have taken -- three years ago the government was are wearing one pound for every for it spent. that was completely -- borrowing a one pound every for it spent. he have taken tough decisions to to -- bring that down and will continue to do so. the deficit has fallen from 11.2% of gdp day forecast of 7.4% this year. this is a follow a third. it then falls further to six point eight percent next year, , thenn 2014, 5% in 2015 3.4% the following year, reaching 2.2% by 2017. thee numbers all exclude transfer of the royal mail pension fund to the government, which reduces the deficit still further for this year alone. said in thises
12:46am
house that borrowing has gone up under this government. the opposite to be true. the previous governments borrowed -- >> order. withoutt have one side the other. it is not a competition, who can shout the loudest. -- i suggestents nobody wants to leave the chamber. let us continue. >> mr. deputy speaker, the facts show the opposite to be true. the previous government borrowed 159 billion in its last year in office. this year the government is forecast to borrow 114 billion pounds. that is not more borrowing. it is 45 billion pounds a year
12:47am
less borrowing. borrowing falls from 108 billion 97t year and falls again to billion in 2014 and 87 billion in the last year of this parliament before falling again the 61 billion and 42 billion the following two years. and to ensure complete transparency, the obr published the numbers without the apf cash transfers. on that measure, borrowing is just forecast to fall. we committed at the start of this parliament to a fiscal mandate that said we would aim to balance the adjusted current budget over the rolling five years. says confirm that the ob ar we are on course to meet our fiscal mandate and needed one year early. however, the likelihood of meeting the supplementary debt target has deteriorated. public sector net debt is forecast to be 75% of gdp this year. 79% next year, and 82% the year
12:48am
after. 2015. him athe year after before falling to 84.8% in 2017. mr. deputy speaker, in response there are those who would want to cut much more than we are planning to and chase the debt target. i said in december that i thought that with the current weak economic conditions across europe that would be a mistake. we have got a plan to cut a structural deficit and our country's credibility comes from delivering the plan, not altering it with every forecast. and that is why interest rates remain so low. has since been supported by the imf, the oecd, and the governor of the bank of england. i do not propose to change the government -- judgment three months later. mr. deputy speaker, i have had representations at this budget
12:49am
for measures that would add 33 billion pounds i year extra for borrowing on top of the figures i have announced. it is from people who seem to think that the way to borrow less is to borrow more. they would return us to these double-digit deficits of the last government and give us far and away one of the highest deficits in the western world. that would pose a huge risk to the stability of the british economy, threaten a sharp rise in interest rates, and leave the burden of debt to our children and our grandchildren. withl not take that gamble the future of this country, especially when those representations came from the very same people whose previous candle w have the economy led te mess we are cleaning up in the first place. , theeputy speaker spending reductions we promised have been more than delivered. welfare reforms have been
12:50am
legislated for and are taking place. here is a clear sign of progress -- the proportion of national income spent by the state has fallen from 47 point four percent three years ago to 43.6% toay, and it is on course reach 40.5% at the end of the period. we set out our deficit plan and are delivering that plan. taking together, the measures i will announce today are fiscally neutral overall. ask the british people and they will tell you, our problem is a country is not the way -- not that we are taxed too little but they're the government spends too much. i agree with them. so the tax cuts in this budget are not borrowed. they are paid for. that is our way and it is the only responsible way to lower taxes. it is the speaker, central plank of our economic plan that a tough and credible fiscal policy creates the space for inactive monetary policy.
12:51am
recovering from the financial crisis has exposed the shortcomings of conventional monetary tools. we in britain have had to innovate and develop new tools. so have other countries. i confirmed today the asset purchase facility will remain in place for the coming year. we are now actively considering with the bank of england whether there are potential extensions to the successful funding for lending scheme that will boost lending still further. we are also setting out our plans for lending from a new business bank. an i want to make sure that active monetary policy plays a full in supporting the economy. so i am today setting out an updated remit for the monetary policy committee. alongside it we are publishing a review of the monetary policy framework. this budget confirms the primacy of price stability and the inflation target in britain's monetary policy framework area the updated remit reaffirms the inflation
12:52am
target is two percent as measured by the 12 month increase in the consumer prices index. at allget will apply times. as we have seen over the last five years, low and stable inflation is a necessary but not sufficient condition for prosperity. the new remit explicitly tasks setting outh clearly betrayed us it is made in deciding how long it will be before inflation returns to target. to ensure a fuller communication between the bank and the treasury i am changing the timing of the open letter system so that when inflation is above target the governor will write to me on the day the minutes of the next meeting are published to allow for a more substantive exchange of views. also recognizes that the monetary policy committee may need to use unconventional monetary instruments to support the economy well keeping inflation stable. and it makes clear the
12:53am
committee may wish to issue explicit forward guidance on my including using intermediate thresholds in order to influence sex dictations on the future path of interest rates. that is what the u.s. federal reserve has now done making a commitment to keep interest rates low while unemployment is high, provided inflation is not expected to rise too much. economy help the because it gives families planning their futures, and businesses wondering whether to invest, more confidence that interest rates will stay lower for longer. so i am asking the monetary policy committee to provide an assessment of how intermediate thresholds and -- might work in britain and to give that assessment in its august 2013 inflation report. that report will be the first issued under the governorship of mark carney. whether intermediate thresholds are used will be a operational matter for the independent committee. i can confirm mervyn king and
12:54am
mark carney have both seen the new remit and have both agreed to it. speaker, active monetary policy can only operate freely when securely anchored by credible him this goal policy. credible fiscal policy. that is the next component of our plan. we have instituted new public spending controls in government. when money is short we make no excuses for the rigorous financial management we have run across whitehall. let me be clear with the house. this is one of the reasons why we have forecast borrowing falling this year and next. the traditional splurge of cash by departments at the end of the financial year, just to get the money spent, has to be curtailed. thanks to the tough financial control of my right honorable friend that she secretary, government departments are forecast to understand their budgets by more than 11 billion pounds this year. if you want to bring borrowing daniel have to control spending, and that is what we have done.
12:55am
now we want to ensure departments have budgets that are more closely aligned to what they actually spend. so both next year and the year after we will reduce resource departmental expenditure limits by the equivalent of a one percent reduction for most apartments. the schools and health budgets will remain protected because our promise to the nhs is a promise we will keep. local government and police allocations have already been set out and will not be affected. thisll also deliver in coming year on this nation's long-standing commitment to the world's poorest to spend 0.7% of our national income on international development. we should all take pride, as i do, in this historic achievement for our country. , the budget will be adjusted to ensure we do not spend more than 0.7%. mr. deputy speaker,
12:56am
departmental budgets have yet to be set for the years 2015-16, which start before the end year of this parliament. this will be done in the spending round that will be set out on june 26. i said last autumn we would require around 10 billion pounds of savings from that spending round. i confirmed today that we will instead be seeking 11.5 billion pounds of current savings. on makingt to go difficult decisions so britain can live within its means. and because we make those decisions we can get our deficit down and focus on the nation's economic priorities. total managed expenditure for 2015-16 will be set at 745 billion pounds. how the savings will be achieved will be a matter for the spending round, but existing protections apply. we are also taking steps to help all departments achieve the savings required. together, my right honorable friend's the chief secretary and the minister for the cabinet office have identified 5 billion
12:57am
pounds efficiency and savings, cutting the cost of administrations can be made. towardll go a huge way delivering a spending round in a way that saves money but protects services. so too will action on pay. the government will extend the restraint on public-sector pay for a further year by limiting increases to an average of one percent in 2015-16. this will apply to the civil service and workforce with pay review bodies. government administration budgets will be adjusted accordingly in the spending round. we will seek substantial savings from what is called progression pay. these are annual increases in pay of some parts of the public sector. i think they are difficult to justify when others in the public sector millions more in the private sector have seen pay frozen or even. i know that is tough but it is fair. in difficult times with the inevitable trade-off between
12:58am
paying people more and saving jobs we should put jobs first. as to deputy speaker -- mr. today is also -- the 10th anniversary of the start of the iraq war, and the awarding of a posture mr. tory across to lance corporal james ashworth this week or minds of the curry agenda sacrifice that all who serve in our armed forces are still making to defend our country. fromll exempt our military changes to progression pay. we are also accepting in full from first may this year the
12:59am
armed forces pay review body's recommended increase to the so- called ex-factor payment made to military personnel to recognize the particular sacrifices they make. i can also announced that further awards from the libor banking finds have gone to good military causes, with money for combat stress to help veterans with mental health issues and funds for christmas box was for all our troops on operation this year and next. those who have paid fines and our financial sector because they demonstrated the very worst values are paying to support of those in our armed forces who demonstrate very best of british values. mr. deputy speaker, all to millie is a country we will not be able to spend more on the services we all value, from our nhs to our armed forces, or invest in our infrastructure, go on tackling the growth of spending of welfare budgets. the public spending framework introduced by the previous government divided government spending the two halves.
1:00am
fixed departmental budgets and was called annually managed expenditure. the annual managed expenditure. in practice it was unmanaged expenditure and that includes almost the entire welfare budget, as well as items like debt interest and payments to the unions. according to the forecast today, the european budget deal by the prime minister has paid britain a total of 3.5 billion pounds. we will now introduce a new limit of the significant proposal of annually managed expenditure, set out in a way that allows the -- allows us to operate that will bring controlled areas of public spending that have been out of control. we will set out how more details of this work -- in the new spending limit at the brown in june. welfare andns on they are tough, and they affect many people.
1:01am
make the difficult decisions for them and the country, it would be much worse. active monetary policy and a responsible fiscal policy are two components of our plan and we need the supply side reform to put the full weight of our effort behind the entrepreneurial forces. allows hamas to rebuild and businesses to expand. reforms to schools and universities and apprentice chips are the -- apprenticeships aren't -- important and trade agreements with india and japan and the united states are part of the foreign policy and building those competitive -- in the world. and we can provide the economy with the infrastructure that it needs. investment largest in railways cents victorian
1:02am
times and spending more onerous than in a generation. and the treasury is now writing guarantees for major projects from the old power station site to build a new power station of tomorrow. we switched billions of pounds from current capital spending, to mitigate the sharp decline set in by the last government. stillpital spending is due to fall back in 2015-2016 and i don't think that this is sensible, and by using the extra savings, we will list the infrastructure by 3 billion --nds per year, with filth 15 billion of extra capital spending over the next decade, to invest in the economic arteries of this country to get growth slowing to every part of this.
1:03am
deputy speaker, public investment will now be higher on average as a percentage of the national income under our plan that was in the last labor government. out long- will set term spending plans for the long-term capital budget, and the man who delivered the olympics -- will improve the capacity of how they deliver big projects. the second thing we can do is to give our great regional cities and other local areas much greater control of their economic destiny, and in fact, sectors of our global success. businesses have created more the, this was more than first 10 years of the labour government.
1:04am
i accept his excellent idea i endorse the apprenticeships and we have the second-largest aerospace industry in the world, and for the first time in 40 years we export more cars than we import and the agricultural businesses that the cutting edge. we track international success stories with 1.6 billion of long-term funding with the industrial strategies that were launched this week and today, we build on the new tax relief coming into these with new support for the world class visual effect sector. firms will increase with theprocurement budget, with small business search
1:05am
initiative and we will make the growth vouches -- vouchers available, and we're putting new controls on what regulators can charge and giving the pensions --ulator -- he will have this is vital for the economy and the cost of doing business is energy, and creating a low- carbon economy should create jobs rather than costing them. this was a major step forward for new nuclear. ourwe are also announcing intention to take two major carbon caption storage programs, to support the altar- low vehicles -- a mission vehicles in britain, and on that occasion in a non-partisan way about the damage energy costs are doing to the famous ceramics
1:06am
industry. and the levies for the industry. we will provide support for energy intensive industries beyond 2015 and we will lift the assigned contracts, and the expectation is increasing investment but i also want britain to tap into new services so i am --l energy, i have a shell gas field for early investment, and this will be available via -- alongside proposals to allow local
1:07am
communities to benefit. this is part of the future and we will make this happen. we can help companies grow and succeed by building infrastructure, and supporting successful site -- and that is whatctors, this government set out to achieve, and that is what we are delivering. a survey of investors were the most competitive tax regimes in the world. in this global race we cannot stand still. as wewe step up the pace, andr generous incentives, my friend from braintree has done a good job and asked us to extend a holiday, for the enterprise culture, so we're
1:08am
making our new employee share table -- shareholder status -- we're using capital gains tax relief to sell the businesses to their employees. after timesp return of sickness, and we will double to 10,000 pounds the size of the loans that employers can offer tax-free, to pay for speeding tickets. this is a great idea for -- from my hon. friend that i have put into practice. and we have put forward proposals to help investment in social enterprises. i have listened and we will have a new tax relief to encourage private investment in the social enterprises. this is absolutely essential to the economic future of britain oftoday i increase the rate credit to 10%, along with the
1:09am
thisorporation tax rate, limit is one of the most attractive places to innovate, and i also want is to be a place where people raise money and invest, and in places like london, we have a world-leading asset management industry but we are losing to other places in europe. we will abolish the tax that is only payable by the domicile fund. many medium-sized funds use the alternative investment market to help them grow and many observers of the british tax system say that this is long biased towards debt financing over equity investment. the stance onh growth markets, and in parts of europe they have a financial transactions act and we get rid
1:10am
of one. thisrom april next year, will benefit the hundreds of medium-sized u.k. firms, supporting growth across the united kingdom. we also set out to compete with the world in our headline-rated 33% andfrance this is in the u.s. is 40%. we have cut this from 20% that we inherited to 21% but i want to go further and today, i want to send a message to anyone who wants to invest here, to create jobs here, that britain is open for business. reduce the15 we will main rate of corporation tax by another 1% and had a 20% rate to
1:11am
the corporation tax, the lowest business tax of any major economy in the world. we will have achieved in one parliament a long list -- largest reduction in the tax in the histories -- the nation's history and major changes in the british tax system, we will abolish the complex marginal recalculation, and give britain a single rate of corporation tax for the first time since 1973. and as for previous reductions in the tax rate either not intend to pass the benefit on to the banking sector so i will offset this with the bank levy rate to -- for a 0.12%. britain is moving to low and competitive taxes, so we should insist that people pay those
1:12am
taxes and not aggressively avoid them. that is the right way to succeed. under labor we have the best -- the worst of both worlds. the tax revenues fell by billions of pounds as the wealthy paid less. this is the wrong way around. under this government the tax rates are more competitive and the wealthy pay more taxes. this is the right way. this is an inconvenience true for the other side. in every year of the parliament the rich pay a better portion of the income tax than in any of the 13 years of the last labor government. years, toothose 13 many people were allowed to get away with an aggressive tax avoidance and abuse. they boasted that they were paying less taxes than their
1:13am
cleaners and the members opposite lot of them, and that is what i call bad. today i have one of the largest packages of tax avoidance in the budget, the details set out in the red book include agreements to the isle of man to bring in over a billion pounds of unpaid taxes and new rules to stop the abuse of partnership rules, and offshore employment. this is another $2 billion pounds. giving britain its first ever nameabuse rule and we will and shame the avoiders of taxable -- the uses of tax avoidance schemes. this government is not going to let you get away with it. year we lead the international action on tax avoidance -- with the g-20.
1:14am
we want the global rules, governing the taxation of multi- national firms to be updated from the 1920's, for the global internet economy of the 21st century. this is the right and fair thing to do. a tax system more people and businesses pay what is expected as part of the glue that holds our society together. so is the expectation that those who work hard and play by the rules and try to be independent of the state are not undermined, but supported. parents and a mother wondering if it makes financial sense to get a job, we offer tax-free child care. tax-free child care vouchers for working families, 20% of the first 6,000 pounds
1:15am
of your child care, and increased the child care support for the low-income families on universal credit. moneyose who put aside for their retirement, we have a simple, flat-rate pension worth 144 pounds a year. in a pound you see is a pound that you can keep. the self-employed in millions of women, most of all. of course, this is no longer the second pension that they can contract out of. for employers this means paying the same insurance for those without the defined benefit scheme, and private employers can change to accommodate these costs. public-sector employers will have to take the burden and any spending review of the next
1:16am
parliament will of course, take the 3.3 billion pounds cost into account. relatively small number of private-sector employees with defined benefit schemes will pay more national insurance than they do today. so they will pay the same rate of national insurance of the rest of the working population and they will get a larger state pension than reform -- than before. someone who is 40 years old, who has always been contracted out will pay 6,000 pounds of the rest of their working life and get an extra 24,000 pounds in state pension over the course of their retirement. that is a fair deal and that is an aggressive pension reform. the extra $1.60 billion raised, will not be kept by the treasury.
1:17am
the deputy speaker, there is another group of favors i want to talk about today. i am proud to be part of a government that has helps compensate the policyholders of that will live, who suffered a great injustice but we have not helped those before 1992 and now we can, i would like to acknowledge the work of my hon. friend on behalf of these people. we will make payments of 5,000 pounds to those elderly policyholders and an extra 5,000 pounds available to those on the lowest incomes who are on pension credit. we're doing this because quite simply, this is the right thing to do. aspirations means helping those who want to keep their homes instead of having to sell this to pay off the cost of social care. that is what the new cap will
1:18am
deliver, and it also comes in 2016 and is set to the tax savings over 72,000 pounds amylase the threshold for residential care from 23,000 pounds to 118,000 pounds. politicians have talked about doing something for those who have to sell their homes, but nothing has been done until this week. fori want to do much more, unless we fire up the aspirations of the british people, like the fires of ambition, we'll be outsmarted and out competed and outperformed by others in the world who are prepared to work harder for success than we are. this budget makes a new offer for the aspirations of the nation. what symbolizes that more than a desire to own your own home? today i can announce help to
1:19am
buy, the home ownership beyond the great majority, they can't turn to their parents for contribution. that is not just a blow to the most human of aspirations, this is a setback to social mobility and it is hard on the construction industry. this proposes to put it right in a dramatic way. components, first, we commit 3.5 billion pounds of capital spending over the next three years to shares and equity loans, from the beginning of next month we will offer an equity loan worth 20% of the value of a new home to anyone looking to move up the housing ladder. 5% deposit from the savings and the government will lend you 20%. this is interest free in the last five years and that is
1:20am
repaid when this is sold. this is only for those with family incomes below 60,000 pounds. help is available to all buyers of newly-built homes, to anyone looking to move up the housing ladder and the only constraint will be that the home cannot be worth more than 600,000 pounds, but this covers 90% of all homes. this is a great support for home buyers and home builders and because this is a financial transaction, this will not hit our deficit. the second part is even bolder, and has not been seen before in this country. we will help families who want to mortgage for any home that they are buying, who cannot afford the deposit spain demanded today. there is a new mortgage guarantee that will be available to lenders to help them provide mortgages to people who cannot afford a big deposit.
1:21am
will thetgages available to all homeowners, subject to the check on responsible lending, using the government's balance sheets for these high-value mortgages. we will dramatically increase their availability. we have worked with some of the biggest mortgage lenders to get this right and we have guarantees for 113 billion pounds worth of mortgages. theill be available for start of 2014 -- and that would meet the agreement's of the financial policy committee if they want to extend this. it is a dramatic intervention to get the house and marking -- housing market moving and they will set up one-fifth of the cost and for whoever can afford the mortgage but not a big deposit, the mortgage guarantee will help you to buy your own home.
1:22am
use, mr. deputy speaker, all of this government 's fiscal credibility. we also set out more plans for housing and plans to build 15,000 more affordable homes, and the funds available for buildings for rent, so more tenants can buy their own homes. mr. deputy speaker, people have the aspiration to keep more of what they have and this is a difficult aspiration for any chancellor to help with when economic times are tough and money is short, but we are doing the hard work to reduce current spending. there is a tough package to raise money, and that means with this budget we can stay with the path of deficit reduction to increase capital spending and find ways to help families. a duty that was escalated from the previous government, that would have been
1:23am
above and every year of this thisament, we have frozen for three years. -- two years. the government has 6 billion in revenue to date. oil prices have risen again and family budgets are squeezed and those who want us to do more to help them get by, my hon. friend has spoken up, and he is enjoying my many other hon. friends, we have all listened to the people we represent. today, i am canceling the feel- do the increase altogether. petroleum will be 13 pence cheaper, at -- as we have not acted to increase the field duty. this is 7 pounds less every time that you fill up. there is another to the the 2%or we inherited,
1:24am
above inflation increase in alcohol. we are going to stop the biggest discounts of cheap talk of all, but responsible drinkers should not pay the price for problems caused by others, and we have lost 10,000 pubs over the last decade, many hon. members have raised their concerns, like my hon. friend from bristol, committed champion of the famous bruin industry that employs many of his constituents. i will maintain the rise for of all duties with the exception of the year. we will now scrap the bit -- beer-to the escalator altogether. fromhe plans for this year
1:25am
the previous government -- will be canceled altogether. that is what we have been campaigning for but i will go one step further and cut the duty by 1 pence. a penny off of the pint. i expect this to be passed on in full, and all other duties will remain as previously announced. freezingy speaker, petroleum to the will not transform the finances of any family but it helps a little to have some bills that are going up. >> order. can i talk to a couple of this comes to take place outside. -- >> mr. deputy speaker. it helps a lot to keep more of
1:26am
the money you earn before you pay taxes on it. this government supports people who work hard. the personal income tax allowance, was 6.5000 pounds. the lot -- allowance will reach 5,040 pounds with the largest cash increase in its history. their tax will see bill cut by an extra 200 pounds and millions of the lowest paid will be taken out of tax altogether and the government's reconfirms their commitment to raise the personal allowance to 10,000 pounds and we go one better. we said we would raise the allowance to 10,000 pounds by the end of the parliament. now i can confirm that we will get their next year. in 2014.
1:27am
from 2014 there'll be no income tax at all on the first 10,000 pounds of your salary. 10,000 pounds of tax-free earnings, 700 pounds less than this government's first -- almost $3 million of the lowest paid will pay no income tax at all. this is a historic achievement for this government and hard- working families across the country. i know the concept of a 10- pence tax rate has caused problems for hon. members opposite. first they introduced it before they decided introducing this was a mistake, and then decided abolishing it was a mistake and they ought to introduce this again. misery,hem out of their we will turn this into a zero pence band and they will have to worry about this anymore.
1:28am
every person will now be paying no income tax at all. is oneuty speaker there final tax change i want to tell the house about and this is about jobs. aspiration is about living in a country where people can get jobs and the ending of contracting out, generates extra employee national insurance revenues and i want to put them to good use. i want to support jobs and the small businesses that create cut, with a reforming tax the largest tax cut in the budget, because the cost of employing people is a burden, a real barrier to taking an extra person on. i amlp create jobs, tracing the employment allowance, which will work by taking the first 2,000 pounds of the employee national insurance
1:29am
attacksevery company, of jobs were 2,000 pounds for every business in the country, meaning 450,000 small businesses, one-third of all of the employers in the country will pay no jobs tax at all. instead of their own business, theirng of taking on first employee -- they can hire someone on 22,000 pounds a year, and pay no jobs tax. 98% of this will go -- this will become available in april of next year, when the legislation has passed and it will be available to charities and
1:30am
community sports clubs. the last government's answer to britain's economic problems were to propose a tax on jobs. we stop that and now we are taking the tax of jobs. speaker, a new employment allowance to help 98%small firms, that 20 percentf the rates of corporation tax, a 10,000 pound personal allowance, major achievements by this government in difficult times and we understand the way to restore economic prosperity is for the aspirations of the british people. if you want help with child care and to start here on business and you want to save your retirement, if you want to work hard and get on, we are on your side. this is a budget that does not dodds the nation's problems, it confronts them had on hand it is a budget for an aspiration nation, a budget that was to be
1:31am
prosperous, solvents, and free. >> order. if i want the budget they better put the vote. under the standing order no. 51, we will provision the collection of taxes, must be decided without debate. will the chancellor move formally? >> i think that is formally. section 5 of the provisional collection of taxes of 1968, statutory effects should be given to the following motions. do the is holocaust
1:32am
motion 50, as many of that opinion -- >> aye. eyes have it, but only if you are buying. >> the leader of the opposition. >> this is the chancellor's fourth budget, but one thing unites them all. >> they should move the amendment of law. with respect to the revenue,
1:33am
that the resolution does not extend to the making of any the men met with the bad -- value- added tax and the zero-rating, for the acquisitions -- and refining the amount of tax and in a relief other than the relief, that is one, and this applies to the goods of every district and so far as applicable to services of every description. i now call the right of the vote. the leader of the opposition? >> this is the fourth budget of the chancellor but one thing unites the mall. they budget he comes to house, things are worse and not better for the country. growthar's budget -- downyear is down, in 2015, and all he offers as more of the
1:34am
same. higher borrowing and lower growth, -- >> order. rightly, iquite expected the chancellor to be heard and i expect the leader of the opposition to be given the chance. >> they all think that growth matters to people in this country do, and all he offers is more of the same, a more of the same budget from the down- graded chancellor. britain deserves better than this. he almost did not bother to come to the house because the whole budget, including the fiscal forecast, were in the standard before he wrote this. >> order. >> i can understand an
1:35am
opposition that does not want to hear their own leader. in the same way that the opposition did not want to hear the chancellor. the one thing i can guarantee is that the people in this country want to hear what the hon. gentleman has to say. intende fair, he did not for the whole of the budget to be in the standard and i am sure that you will report back to the house. -- theme minister said good news will keep coming and what did the chancellor tell us today. under this government, the bad news does not stop. a steady andomised sustained recovery and he was wrong. we have had the slowest recovery for 100 years. nosaid that there would be
1:36am
double-dip recession. he told us a year ago that growth would be 2% and now he is wrong. he told us next year that growth will be 2.7%. he was wrong again. wait for tomorrow, and i will be vindicated, but with as chancellor, tomorrow never comes. the wrong man in the wrong place at the worst possible time. a downgraded budget from a downgraded chancellor. speaker, he has secured one of grade this year. traveling first class on a second-class ticket to london. >> i don't want to keep repeating myself, i expect --
1:37am
the public expects to hear the leader of the opposition, and you also must listen to the leader of the opposition. they feltime altogether was when the chancellor was booed by 80,000 people. i have some advice for the chancellor. stay away from the cup final even if chelsea gets there. thewho pays the price for chancellor's failure? the families of britain. he predicted that living standards would rise, but prices are rising in britain's families -- they are squeezed them what not tell usor did is the office of budget responsibility confirmed that the british people will be worse off in 2015 than in 2010. this is official, you are worse off under the tories, year after
1:38am
year. and in the extraordinary admissions, no mention of the triple-a rating. what the prime minister called the mark of trust, which she said had been secured. he said it would be a humiliation to be downgraded, so not just the down-graded chancellor but a humiliated chancellor, and what about borrowing? in his budgetaim speech that he was on course. even he can't believe this nonsense. debt is higher in every year of this parliament. he will borrow 200 billion pounds more than planned. but what did he say in the june 2010 budget. he said two benchmarks. he said we're on track to have
1:39am
that falling in a balanced budget by 2014. or as he called it, the four- year plan. these were the terms the offered. for years of pain and tax rises, and the opposition said they would not borrow more, but you are borrowing more. we just need to look down the road. these arerowing more the terms, four years of pain, and tax rises. today, mr. deputy speaker, he could have been telling us, one more year of sacrifice. in 12 months, the good times
1:40am
will roll. alexian plan under way. but three years later what does he say? what he said three years ago. we need four more years of tax rises and spending cuts. after all of the misery and all the harsh medicine, and all the suffering by the british people, no progress and the deal is broken, mr. deputy speaker. and although he offers is more of the same. it is as if they really do believe their own propaganda. that the failure has nothing to do with them. the excuses, all with the snow and auroral -- royal wedding, and the euro-zone and now, they are turning on each other. what did the prime minister say last weekend? he said this, let the message go
1:41am
out, from this fall and this party we are here to fight. , they are speaker doing that. the home secretary has turned on the prime minister, and the education secretary has turned and the whole country can see what is going on. the blame game has begun and the truth is, mr. deputy speaker, the chancellor is last. not because of his judgment but because of pride, not because of the facts but the ideology. country wantse him, or the party, but because he is the prime minister's last line of defense. but bolus and boys are both in this together. understand, they don't understand, you need a
1:42am
recovery made by the many, not just a few people at the top. we have had new turns on charities and churches and caravans, but what is the one policy, what is the one policy that they are committed to. the top rate tax cut. speaker, john the banker? remember him. he has had a tough year with 1 million pounds. what does he get? of 42,000e tax cut pounds next year. half thousand pounds. double the average wage. that are ofe -- little better, bringing home 5 million pounds per year. the prime minister does not like to hear what he agreed to.
1:43am
250,000t of nearly pounds. and at the same time, everyone else pays the price. the chancellor is giving with one hand and taking far more away with the other. disabled people are hit by the bedlam tax and millions pay more for the millionaires to pay less. the chancellor mentioned child for these 7 billion and offering 700 million pounds. what of the families waiting for the child care. they have to wait over two years, for the help to arrive. for the richest they have to wait two weeks for the millionairess tax cut. that is the britain of david cameron. the primerse, still,
1:44am
minister refuses to tell us, about whether he is getting the tax cut. getting embarrassed now, he has had a year to think about this, he must have done the math. so, come on. not your head if you are getting this tax rate. they are? >> order. theus hear the leader of opposition. >> i am not getting that tax rate. i am asking if the prime minister is. answer. he is the person that said, satellite is the best disinfectant. let's try something else. what about the rest of the
1:45am
cabinet? hands up if you are not getting this tax cut. >> order. >> the gentleman wishes to take a cup of tea. >> hands up. if you are not getting this tax cut. >> the del like this. speaker, thedeputy cabinet are united with a simple message. thanks to george, for raising taxes on them than everyone else. he had measures that he said would produce growth, just like every year. loan guarantee
1:46am
scheme. he abolished this -- >> i think your voice could be better saved for this weekend. i think he is better off cheering them off. >> he trumpeted the national loan guarantee scheme. and then he abolished this for months later. the funding for lending scheme that he said would create prospects for small businesses. and today, he talked about housing, and the prime minister said this. house and strategy -- and in his understated way he said this was an unambiguously -- this would give the housing industry a shot in the arm and 100,000 people would be allowed to buy their own homes. 18 months later, how many
1:47am
families have been helped? not 100,000, not even 10,000. 98,000 brokenle, promises. housing completions are now the lowest level since the 1920's, and 130,000 jobs lost in construction. afailing economic plan from failing chancellor. he has failed the test of the british people. growth and living standards, but he has not just failed them, he has failed on his own as well. although he has to offer is the more of the same budget. this all in 140 characters. millionaires laughing all the way to the bank. downgraded it chancellor.
1:48am
more of the same is not the answer to the problems of the last three years. more of the same as the answer of the downgraded chancellor. britain deserves better than this. >> next, a house hearing on the electronic privacy. after that, and house hearing with federal housing a minister and acting director edward demarco, and then q and a with dr. francis collins. monday, former afghanistan war commander general john allen talks about the u.s. and nato missions in afghanistan. live coverage from the brookings institution begins at 10:00 eastern on c-span. >> monday night on first ladies, called a bigamist and an
1:49am
adult. during her husband's 1828 campaign, racial jackson dies of before andrew jackson takes office. emily donaldson becomes the hostess but is released in fallout of a scandal. and the daughter of martin van buren is the hostess -- we will include your comments by phone, facebook, and weather. radio and c-n span.org. >> you have been on the commission since 2006 and the chairman has been on since 2009. his term is up and yours will be up next year. should we expect some turnover? years have flown by very quickly,

Terms of Use (10 Mar 2001)